I found out that the <FieldRefs> tag seems to be mandatory to make sure the content type will inherit fields correctly. E.g. if you create a content type that inherits from the Document content type and don't include the <FieldRefs> tag, event if it's empty, the new content type will only contain fields that are explicitly defined in the Document content type and not the Title field declared in the Item content type, which the Document content type inherits from.